July 26 (Reuters) - Centene Corp ( CNC ) beat Wall

Street estimates for second-quarter profit on Friday following

the company's announcement that it was no longer required to

make a $1.3 billion payment related to its government-sponsored

Medicaid offerings.

The health insurer was expected to pay the amount towards

the U.S. Centers for Medicare & Medicaid Services' risk

adjustment program for 2023. But the agency has said the company

can forgo the payment.

Centene's ( CNC ) second-quarter medical loss ratio - the percentage

of premiums spent on medical care - was 87.6%, a slight increase

from 87% a year earlier.

Wall Street analysts were expecting a medical loss ratio -

a metric that tracks medical costs - of 86.84%, according to

LSEG estimates.

Centene ( CNC ) and its peers have experienced higher-than-expected

costs arising from their government-backed plans as states began

reassessing Medicaid enrollment eligibility after the

termination of a policy last year that required insurers to keep

low-income Americans enrolled through the COVID-19 pandemic.

For the reported quarter, Centene's ( CNC ) total Medicaid

memberships fell more than 18% from a year earlier. It had 13.14

million Medicaid members as of June 30.

The company still has "work to do in Medicaid as

redeterminations wind down," Chief Executive Officer Sarah

London said. However, Centene ( CNC ) maintained its full-year adjusted

profit forecast of more than $6.80 per share for 2024.

Analysts were expecting a full-year profit of $6.83 per

share.

For the second quarter, the company earned $2.42 per share

on an adjusted basis, compared with analysts' average estimate

of $2.07, according to LSEG data.

The results follow the company's preliminary earnings

report on Tuesday.